Employment taxes have remained stable since the 2015-2019 tax shift, which significantly reduced the cost of labor in Belgium, write the authors of the study. Compared to 2013, the “tax liberation day” thus occurs 24 days earlier, i.e. a benefit of 4,800 euros in annual net salary.
The purchasing power of Belgians has nevertheless suffered from the pandemic, which has “depressed average wages”, and inflation is increasing, we note.
On the basis of the 34 countries studied, taking into account employer and employee contributions, income tax and VAT or its equivalent, Belgium remains in 3rd place, only France and Austria taxing more their average earners, according to the report.
Its authors also point out that while Belgian employees are expensive for their employers (8th position out of 34 countries studied, 7th in the European Union), they have less attractive wages net of charges and taxes (14th out of 34, 10th in the EU).
In Belgium, an employer spends 208 euros for an average employee to earn 100 euros following income tax, down from a record high of 234 euros in 2013.
The “effective tax rate” of a Belgian employee is now 53.5%, compared to an average of 43.9% in the EU.
Belgian public administrations receive 31,467 euros on the average Belgian salary (including estimated VAT). Only the Austrian, German or Dutch administrations receive more, the salaries being higher in these countries, concludes the study.